Czech billionaire Michal Strnad has offered about 30 billion euros for Delfin Sarl – the investment holding company of the heirs of Luxottica founder Leonardo Del Vecchio. The offer was made in a letter dated October 20 and is aimed at acquiring the entire company, Bloomberg and Reuters reported.
The holding company, registered in Luxembourg, is the largest shareholder in EssilorLuxottica – the group that produces glasses and owns the Ray-Ban brand. Delfin holds nearly a third of the company's shares. His portfolio also includes stakes in the Italian insurance group Generali and the banks UniCredit and Monte dei Paschi di Siena.
Delfin's publicly traded assets are valued at over 40 billion euros. According to the terms of the letter, Strnad values the holding at about a 30% discount to its net asset value. The offer is all in cash and is valid for 30 days.
Strnad has indicated that he would also accept the acquisition of a controlling stake of 62.5% if he fails to negotiate the purchase of the entire holding. In his letter, he defines Delfin as a company that "fits perfectly" into his investment approach and strategy. The Czech entrepreneur is looking for long-term investments in businesses capable of generating sustainable cash flows.
The offer must pass through the eight heirs
Ownership of Delfin is divided equally between eight heirs of Leonardo Del Vecchio - his six children, his widow Nicoletta Zampiello and her son from a previous marriage Rocco Basilico. Each of them owns 12.5% of the holding.
To change the ownership restrictions and possibly sell the company, the consent of all eight shareholders is required. The decision is complicated by ongoing disagreements within the family and different positions on the future of the holding.
Leonardo Maria Del Vecchio, one of the shareholders, confirmed that he had been informed of the offer. "My father's life's work must remain part of Italy's heritage," he said. Delfin declined to comment on the offer, and a representative for Strnad did not immediately respond to Reuters.
Possible implications for EssilorLuxottica
The potential deal would have implications not only for the family holding company but also for the Italian corporate sector. Delfin is the main shareholder in EssilorLuxottica, which has a market value of more than 80 billion euros. Italian newspaper Il Domani reported that a change in control of Delfin could also lead to a mandatory takeover bid for EssilorLuxottica shares.
There is no decision to sell yet, nor has there been any publicly announced shareholder approval. The next step is for the heirs to review the terms of the offer within a 30-day period.
Sources: live.euronext.com, ansa.it, idnes.cz